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$BA Faces Limited Range Rules as They Get Back in the Air

“(Reuters) – As Boeing works to regain permission for its 787 Dreamliner to resume flights, the company faces what could be a costly new challenge: a temporary ban on some of the long-distance, trans-ocean journeys that the jet was intended to fly.

Aviation experts and government officials say the Federal Aviation Administration may shorten the permitted flying time of the 787 on certain routes when it approves a revamped battery system. The plane was grounded worldwide two months ago after lithium-ion batteries overheated on two separate aircraft.

Losing extended operations, or ETOPS, would deal a blow to Boeing and its airline customers by limiting use of the fuel-saving jet, designed to lower costs on long-distance routes that don’t require the capacity of the larger Boeing 777. Such a loss could even lead to cancellation of some routes.

“If the FAA approves (only) over-land operations it would be a very damaging blow to the 787 program,” said Scott Hamilton, an aviation analyst with Leeham Co in Seattle.

“Depending on how long that restriction remains in place, it would completely undermine the business case for the airplane, which was to be able to do these long, thin intercontinental routes” over water, he said.

Grounding the 787 already has cost Boeing an estimated $450 million in lost income and compensation payments to airlines. Further restrictions on the 787’s range could send the airlines’ claims – and Boeing’s costs – higher…..”

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